10Y annualized return is
negative
at -9.3% per year
SLB has met or exceeded earnings expectations in
most
recent quarters (9/10)
Attractive PE Ratio
Reasonable Price-to-Sales Ratio
Strong Return on Equity
Healthy Net Profit Margin
Solid Current Ratio
Strong Interest Coverage
🏆 Diverse Portfolio Strength
🚀 Digital Innovation Leadership
💰 Strong Shareholder Returns
🔮 Positive Outlook for 2025
🌍 Growth Beyond Oil and Gas
High Price-to-Book Ratio
Moderate Operating Profit Margin
Higher Debt Levels
📉 North America Challenges
⚠️ Market Caution
Overall, SLB exhibits strong business quality through its diversified portfolio and leadership in digital innovation, while also maintaining a commitment to shareholder returns. Future prospects remain stable with growth in low-carbon initiatives, although caution in market spending could pose challenges in 2025.
Analysis Date: January 17, 2025
Last Updated: March 12, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
Schlumberger Limited is a company that helps the energy industry, especially oil and gas companies. They provide a wide range of services and equipment to find and produce oil and gas. This includes things like drilling tools, technology to monitor wells, and support for planning and improving production. In simple terms, they make it easier and more efficient for companies to get energy from the ground.
Streams of revenue
Geographic Distribution
Core Products
Business Type
Business to Business
Competitive Advantages
Key Business Risks
Latest News
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Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$122.15
Current Market Price: $33.64
IV/P Ratio: 3.63x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
72.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for SLB
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (10.96)
P/B ratio ≤ 1.5 (2.31)
Current ratio ≥ 2.0 (1.45x)
Long-term debt < Net current assets (1.91x)
Margin of safety (72.0%)
SLB does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
18.11%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-30)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
20.35%
Higher values indicate better efficiency in production
TTM (as of 2025-04-30)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
12.29%
Higher values indicate better overall profitability
TTM (as of 2025-04-30)
SLB's return on equity (ROE) of 21.13% demonstrates efficient use of equity capital, indicating strong profitability compared to competitors.
A net profit margin of 12.29% reflects effective cost management and strong pricing power, contributing to overall profitability.
The operating profit margin of 12.58% may suggest room for improvement in operational efficiency compared to industry peers.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.54x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
1.45x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
The current ratio of 1.45 indicates that SLB has sufficient short-term assets to cover its short-term liabilities, suggesting good liquidity.
An interest coverage ratio of 8.92 shows that SLB can comfortably meet its interest obligations, reducing the risk of financial distress.
With a debt-to-equity ratio of 0.57, SLB has moderate leverage which could pose risks during economic downturns if revenues decline.
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
EPS
SLB's diverse portfolio across the upstream oil and gas lifecycle has demonstrated resilience and strong financial results. The company achieved a cycle-high international revenue and strong free cash flow, showcasing its ability to adapt to global market changes.
SLB is at the forefront of digital transformation, with a significant 20% growth in Digital revenues in 2024. Strategic partnerships with tech giants like NVIDIA and AWS enhance its competitive advantage.
The company returned $3.3 billion to shareholders in 2024 through dividends and stock buybacks, reflecting confidence in its financial performance and commitment to shareholder value.
Revenue in North America declined by 1%, impacted by lower CapEx and drilling activity in U.S. lands, highlighting vulnerabilities in this key market.
SLB expects a steady revenue outlook for 2025, with adjusted EBITDA margins projected to be at or above 2024 levels, indicating stability in its financial performance despite market fluctuations.
The company is expanding its presence in low-carbon markets and data center infrastructure, with revenues from these initiatives exceeding $850 million in 2024 and expected to grow significantly in 2025.
The cautious approach of customers towards upstream investments due to concerns about an oversupplied oil market may hinder growth in 2025, particularly in North America.